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CompaniesNETELLER pulls out of US as former directors targeted
In the latest move against the online gambling industry, US authorities arrested Stephen Lawrence and John Lefebvre, two former directors of online money transfer business NETELLER.
The two men were detained while travelling separately in the US and charged with facilitating the transfer of billions of dollars in illegal gambling proceeds. Lawrence is NETELLER’s former chairman. The company’s shares have been suspended and it has ceased processing transactions for the US market.
The US attorney for the southern district of New York noted that at the time the defendants took NETELLER public, the company conceded in its prospectus that US laws prohibit the promotion of certain forms of gambling, and that directors were risking prosecution by operating there.
The charges carry a maximum sentence of 20 years imprisonment. US attorney Michael Garcia said, “Blatant violations of US law are not a mere ‘risk’ to be disclosed to prospective investors”.
This latest move differs from action by US authorities, said Lombard in the Financial Times (17 January), because NETELLER is an ancillary company: it allows online payments to be made, but does not host gaming websites. Lombard suggested this incident emphasises risks investors in the sector should have known about already.
LinksUS Attorney for the Southern District of New York
February, 2007 |
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